Green Technology and Sustainability Market Size - By Technology (Internet of Things (IoT), AI and Analytics, Digital Twin, Cloud Computing, Blockchain, Others), Component (Solution, Services), Application, Regional Analysis & Global Forecast, 2023 - 2032

Green Technology and Sustainability Market Size - By Technology (Internet of Things (IoT), AI and Analytics, Digital Twin, Cloud Computing, Blockchain, Others), Component (Solution, Services), Application, Regional Analysis & Global Forecast, 2023 - 2032

Green Technology and Sustainability Market Size

Green Technology and Sustainability Market size was valued at USD 14.3 billion in 2022 and is projected to register a CAGR of over 19.5% between 2023 and 2032. The growing awareness of Corporate Social Responsibility (CSR) initiatives is a significant factor driving the market growth. As companies increasingly recognize the importance of environmental responsibility, they are adopting sustainable practices and technologies to align with their CSR goals. Tech giants such as Google and Apple are committed to powering their operations with renewable energy sources.

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Likewise, companies such as Unilever are focusing on reducing their environmental footprint through sustainable sourcing and manufacturing practices. This heightened awareness is not only shaping corporate strategies but also influencing consumer preferences, driving the demand for eco-friendly products & services. As CSR initiatives become more integral to brand identity & reputation, the green technology and sustainability market will continue to grow.

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Stringent government regulations & policies are driving the green technology and sustainability market. Governments worldwide are implementing environmental laws and emission reduction targets, compelling industries to adopt eco-friendly solutions. The European Union's Green Deal enforces ambitious carbon reduction goals, promoting renewable energy, electric vehicles & circular economy practices. In the U.S., various states have introduced the Renewable Portfolio Standards mandating the use of clean energy sources. Such regulations incentivize businesses to invest in green technologies and sustainability measures, fostering market demand while mitigating environmental impacts and climate change.

The high initial cost is a major challenge in the green technology and sustainability market. Many sustainable solutions, such as renewable energy systems or energy-efficient appliances, often involve substantial upfront investments. To address this challenge, governments and financial institutions can provide incentives, such as tax credits, subsidies, or low-interest loans, to make green technologies more affordable. Additionally, innovation in manufacturing and economies of scale can gradually reduce the cost of sustainable products, making them more accessible to a broader range of consumers & businesses.

COVID-19 Impact

COVID-19 had mixed impacts on the green technology and sustainability market. While the pandemic temporarily disrupted supply chains and slowed down some renewable energy projects due to lockdowns & economic uncertainties, it also highlighted the importance of sustainability and resilience. Governments and organizations recognized the need for green solutions in the pandemic recovery efforts, leading to increased investments in renewable energy, sustainable infrastructure & eco-friendly technologies. This shift in focus and awareness ultimately accelerated the market size.

Green Technology and Sustainability Market Trends

The adoption of solar, wind, and hydropower for clean energy generation is an emerging trend in the green technology and sustainability industry. As concerns over climate change intensify, there is a growing shift toward renewable energy sources that produce minimal greenhouse gas emissions. Advancements in technology have made these sources more cost-effective and accessible, attracting both businesses & governments that are aiming to reduce their carbon footprint and promote sustainable energy solutions.

The increasing popularity of Electric Vehicles (EVs) and the expansion of EV charging infrastructure are emerging trends in the green technology and sustainability market. With rising concerns about air pollution and climate change, there is a growing demand for eco-friendly transportation. This has led to the development of more affordable and efficient EVs. Simultaneously, governments and private entities are heavily investing in EV charging infrastructure to alleviate range anxiety and promote EV adoption. This trend aligns with the broader goal of reducing carbon emissions and fostering sustainable mobility solutions.

For instance, in September 2023, Tata launched the new Nexon EV with an innovative digital design. This Electric Vehicle (EV) contributes to the green technology and sustainability market by offering an eco-friendly & technology-driven transportation option, reducing emissions and promoting sustainable mobility.

Green Technology and Sustainability Market Analysis

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The solution segment recorded around 67% of the green technology and sustainability market share in 2022. The segment encompasses a wide range of components including solar panels, wind turbines, electric vehicle batteries, and smart grid systems. As the demand for sustainable solutions intensifies, advancements in these components lead to increased efficiency and affordability.

Innovation in solar panel technology has significantly reduced the cost of solar energy production, making it more accessible to consumers and businesses. Similarly, developments in energy storage systems such as lithium-ion batteries are driving the growth of electric vehicles and renewable energy integration. This trend showcases the pivotal role of component-level innovation in propelling the market forward.

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The Internet of Things (IoT) segment held a dominant green technology and sustainability market share in 2022.  IoT enables real-time monitoring and control of energy usage, waste management & resource conservation. Smart grids use IoT to optimize electricity distribution, reducing energy wastage. In agriculture, IoT sensors monitor soil conditions and irrigation needs, promoting sustainable farming practices.

As sustainability gains prominence, IoT's ability to enhance resource efficiency and environmental monitoring positions it as a key driver of green technology adoption & growth in various industries. For instance, in April 2023, Element14, an Avnet Community, launched the Summer of Green Technology to celebrate Earth Day. This program includes webinars, training courses, quizzes, and hands-on activities for members to enhance their knowledge & skills in green technology. It aims to promote eco-friendly practices and sustainability within the community during the summer season.

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North America green technology and sustainability market accounted for 36% of revenue share in 2022. For instance, in September 2023, Salesforce launched Einstein Copilot, an AI assistant for CRM tasks, and Copilot Studio for AI app development. These offerings cater to the growing demand for AI customization in productivity tools. They will also include the 'Einstein Trust Layer' to ensure data security. This innovation aligns with the broader trend of AI adoption in various industries, where AI can enhance efficiency and drive sustainable practices.

The region boasts a strong emphasis on environmental responsibility with many government policies & regulations promoting clean energy and sustainable practices. Investments in renewable energy sources, such as wind & solar power, are on the rise. Additionally, the growing popularity of electric vehicles and the development of EV charging infrastructure contribute to sustainability efforts. This commitment to eco-friendly solutions, coupled with substantial technological innovation and corporate sustainability initiatives, positions North America as a key region driving the global market expansion.

Green Technology and Sustainability Market Share

Major companies operating in the green technology and sustainability market are

• Schneider Electric
• Salesforce, Inc.
• Microsoft
• Enablon (Wolters Kluwer N.V.)
• Engie Impact
• Sensus
• CropX
• Taranis

These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products & services and garner the maximum market revenue.

Green Technology and Sustainability Industry News

• In September 2023, the Green Digital Economy Platform (GDEP) launched an international initiative endorsed by Indonesia and Korea to promote sustainability & digital well-being while advancing the digital economy. This collaboration is valuable for the market as it signifies a commitment to harnessing digital innovation to address environmental challenges, drive sustainable practices, and foster an eco-friendly & technologically advanced future.

This green technology and sustainability market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Technology

• Internet of Things (IoT)
• AI and analytics
• Digital twin
• Cloud computing
• Blockchain
• Others

Market, By Application

• Green building
• Carbon footprint management
• Air and water pollution monitoring
• Weather monitoring and forecasting
• Fire detection
• Crop monitoring
• Soil condition/moisture monitoring
• Forest monitoring
• Sustainable mining and exploration
• Others

Market, By Component

• Solution
• Services

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

What is the green technology and sustainability market?

The market size of green technology and sustainability reached USD 14.3 billion in 2022 and is set to register over 19.5% CAGR from 2023 to 2032, due to the growing awareness of corporate social responsibility (CSR) initiatives worldwide.

Why is the demand for green technology and sustainability solutions growing?

The solution component segment held 67% of the market share in 2022, on account of the increasing demand for sustainable solutions with heightened efficiency and affordability.

What factors are influencing green technology and sustainability industry growth in North America?

North America market accounted for 36% of the market share in 2022, owing to the strong emphasis on environmental responsibility with many government policies & regulations promoting clean energy and sustainable practices in the region.

Who are the key green technology and sustainability market players?

Schneider Electric, Salesforce, Inc., Microsoft, Enablon (Wolters Kluwer N.V.), Engie Impact, Sensus, CropX, and Taranis are some of the major green technology and sustainability companies worldwide.